Exelon Corporation · NASDAQ:EXC
Exelon — UBS Natural Gas & Electric Utilities Conference (February 2007)
23 slides from Exelon's conference presentation, Feb 28, 2007
Slide 1: Exelon Nuclear - Value Driven
Exelon Nuclear - Value Driven Christopher M. Crane President & Chief Nuclear Officer, Exelon Nuclear UBS Natural Gas & Electric Utilities Conference New York, New York February 28, 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from these forward-looking statem
Slide 3: 2006 Highlights
2006 Highlights Solid financial operating EPS results Higher generation margins Strong nuclear and fossil performance Higher O&M costs ICC approved IL auction Completed ComEd ring-fencing DST rehearing results ICC approved residential rate phase-in plan 2006: 4% growth in operating earnings, 10% gro
Slide 4: Multi-Regional, Diverse Company
Multi-Regional, Diverse Company Note: Megawatts based on Exelon Generation's ownership as of 12/31/06 Midwest Capacity Owned: 11,389 MW Contracted: 4,791 MW Total: 16,180 MW ERCOT/South Capacity Owned: 2,299 MW Contracted: 2,900 MW Total: 5,199 MW New England Capacity Owned: 622MW Mid-Atlantic Capac
Slide 5: Exelon Generation's Value Proposition
Exelon Generation's Value Proposition Large, low-cost, low-emissions, well-run nuclear fleet Sustained operating and financial excellence Complementary and flexible fossil and hydro fleet Track record of improving asset performance Generation business is uniquely positioned to capture value through:
Slide 6: Track Record of Nuclear Excellence
Track Record of Nuclear Excellence Exelon Nuclear has implemented its Management Model in 20 units, with sustained excellent results Capacity factor is consistently high Production cost shows similar results Sustainability of Exelon Model The Exelon Nuclear model is sustainable and scalable 1998 199
Slide 7: Superior Nuclear Operating Performance
Superior Nuclear Operating Performance Range of Nuclear Capacity Factors (2001-2005) Sources: Platt's, Nuclear News, NRC and Department of Energy EXC 93.1% - - 5-year Average Exelon Nuclear's sustained reliability is a competitive advantage
Slide 8: Nuclear Performance - Refueling
Nuclear Performance - Refueling Range of Nuclear Refueling Outage Durations (2001-2005) Source: Platt's; excludes steam generator replacement and reactor head replacement outages Exelon Nuclear's refueling excellence drives higher generation EXC 25 days Refueling Outage Duration (# days)
Slide 9: Nuclear Performance - Fuel Costs
Nuclear Performance - Fuel Costs 2005 2006 2007 2008 2009 2010 2011 Contracted Supply 12508 8630 9765 7497 9309 7459 4260 2003 Demand Projection 13300 12900 Current Demand Projection 8407 9765 7497 9378 8370 7874 2007 2008 2009 2010 2011 Exelon average re-load price 20 29 44 55 75 projected market p
Slide 10: Nuclear Going Forward
Nuclear Going Forward Exelon's conditions for new build remain unchanged; economics must be right Recently announced intent to file Construction & Operating License (COL) in ERCOT by end of 2008 Preserves option to participate in Energy Policy Act incentives Supports NRC resource planning New nuclea
Slide 11: Cost Management
Cost Management Exelon Nuclear's costs are consistently low Sustained leadership in production cost year-over-year Advantages of size and scale Ongoing focus on cost management All nuclear operators are facing upward cost pressures Pensions and benefits Materials and services Fuel, security, and reg
Slide 12: Summary
Summary Well-run generating fleet Significant nuclear cost advantage Focus on the fundamentals Well-positioned to respond to market demand Scalable management model Deep management and technical bench Sustained track record of performance
Slide 13: Appendix
Appendix
Slide 14: The Exelon Companies
'06 Earnings(1): $1,275M '07E Earnings(3): $2,280 - $2,420M '06 EPS(1): $1.88 '07 EPS Guidance(3): $3.40 - $3.60 Credit Rating(4): BBB+ The Exelon Companies Pennsylvania Utility Illinois Utility Nuclear, Fossil, Hydro, & Renewable Generation Power Marketing '06 Earnings(1): $528M $455M '07E Earnings
Slide 15: Announced Nuclear Projects
Announced Nuclear Projects 16 companies and consortia are considering new build, totaling more than 40,000 MWs Company Owner Site State Type of Site Technology MWs COL Submission Date NuStart TVA/Southern Bellefonte Alabama Characterized site AP1000 (2 units) 2,234 Oct-07 NuStart Entergy Grand Gulf
Slide 16: Energy Policy Act - Nuclear Incentives
Energy Policy Act - Nuclear Incentives Production Tax Credit (PTC) $18 per MWh, 8 year PTC for first 6,000 MWe of new capacity Cap of $125M per 1,000 MWe of capacity per year Protects against a decrease in market prices and revenues earned Significantly improves EPS Benefit will be allocated/ prorat
Slide 17: Nuclear Operating Services Contract
Nuclear Operating Services Contract PSEG Nuclear Operating Services Contract (NOSC) Salem and Hope Creek have demonstrated significant performance improvement under NOSC 96% 2006 site capacity factor 18% improvement in capacity factor since 2004 World and site record-setting refueling outage perform
Slide 18: GAAP EPS Reconciliation
— GAAP EPS Reconciliation ff
Slide 19: GAAP EPS Reconciliation 2000-2002
GAAP EPS Reconciliation 2000-2002
Slide 20: GAAP EPS Reconciliation 2003-2005
GAAP EPS Reconciliation 2003-2005
Slide 21: GAAP Earnings Reconciliation Year Ended December 31, 2006
GAAP Earnings Reconciliation Year Ended December 31, 2006 (in millions) ExGen ComEd PECO Other Exelon 2006 GAAP Reported Earnings (Loss) $1,407 $(112) $441 $(144) $1,592 Mark-to-market (61) 3 - - (58) Investments in synthetic fuel-producing facilities - - - 24 24 Charges associated with now terminat
Slide 22: GAAP EPS Reconciliation Year Ended December 31, 2006
GAAP EPS Reconciliation Year Ended December 31, 2006 ExGen (1) ComEd (1) PECO (1) Other (1) Exelon 2006 GAAP Reported EPS $2.08 (0.17) 0.65 (0.21) $2.35 Mark-to-market (0.09) - - - (0.09) Investments in synthetic fuel-producing facilities - - - 0.04 0.04 Charges related to proposed merger with PSEG
Slide 23: Exelon Investor Relations Contacts
Exelon Investor Relations Contacts Inquiries concerning this presentation should be directed to: Exelon Investor Relations 10 South Dearborn Street Chicago, Illinois 60603 312-394-2345 312-394-4082 (Fax) For copies of other presentations, annual/quarterly reports, or to be added to our email distrib
Exelon — UBS Natural Gas & Electric Utilities Conference (February 2007) on 6ix